Crypto Markets Reel After Senate Fails to Advance CLARITY Act
Crypto markets have taken another hit after the Senate failed to advance the CLARITY Act, with Bitcoin, Ethereum, and XRP all falling in value. Bitcoin dropped nearly 4% to around $76,000, while Ethereum plummeted more than 6% to near $2,400. XRP suffered an even steeper decline, dropping toward $1.28-$1.29.
The Federal Reserve's rate decision on September 16 is now in focus, with markets expecting a 25-basis-point hike. A less aggressive Fed message could give Bitcoin room to recover, but signals that additional tightening is coming could keep Treasury yields elevated and make another $80,000 attempt more difficult for BTC.
Ethereum faces its own recovery challenges, entering the Fed decision around $2,400, well below the roughly $2,500 level it was struggling with only days ago. Reclaiming this region would be an important first sign that buyers are returning to ETH.